In the lead up to the federal election, the authors of the Rental Affordability Index have called for new emphasis on housing affordability, as the latest data reveals even middle-income earners are experiencing rental stress.
New research shows Labor’s negative gearing policy could have a greater impact on property prices, economic activity and state revenues than previously thought.
If negative gearing is restricted, there is a risk that investors will be discouraged from purchasing property, thereby reducing the number of rental options for those who choose or must rent their home.
With negative gearing only available for investment in newly-built residential property existing investors will find it more difficult to sell their properties as other investors will show little interest in existing property with inevitable falls in value to follow.